REG - Aberdeen Group PLC - Agreement With Herald Investment Trust and Saba

AberdeenAnnouncement

Yesterday 07:10

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RNS Number : 3978D  Aberdeen Group PLC  07 May 2026

Aberdeen Group plc ('the Company')

 

 

ABERDEEN INVESTMENTS REACHES AGREEMENT WITH HERALD INVESTMENT TRUST AND SABA
CAPITAL

 

·    Aberdeen Investments proposed to become manager of Herald Investment
Trust in Q3 2026

 

·    Fund manager Katie Potts to join Aberdeen bringing deep experience
investing across technology, small caps and media

 

·    Standstill agreement with Saba covering Herald and up to a further
eight investment trusts in Aberdeen's range

 

Further to the Announcement from Herald Investment Trust plc ("HRI") released
earlier today, the Company is pleased to announce that Aberdeen Investments 1 
is proposed to be appointed as investment manager to HRI. The proposal is part
of a broader agreement that is intended to bring Herald Investment Management
Limited's ("HIML") funds under Aberdeen's management, including the Herald
Worldwide Technology Fund, currently representing combined assets under
management of c.£1.6bn 2 .

 

Eight staff, including lead manager Katie Potts, are expected to join
Aberdeen, bringing deep experience in investing across technology, smaller
companies and media. The team will relocate to Aberdeen's London office, and
gain access to Aberdeen's extensive distribution and marketing capabilities.

 

HRI has today announced a proposed tender offer for up to 66% of HRI's issued
share capital, that will allow largest shareholder, Saba Capital Management
L.P. ("Saba"), and other HRI shareholders, an exit at close to NAV, or to
continue their investment in HRI. Saba has given an irrevocable undertaking to
tender its full holding in HRI. Assuming the successful completion of the
tender process, and subject to necessary approvals and finalisation of
transitional arrangements, the change of investment manager is expected to
take effect in Q3 2026.

 

As part of this arrangement, Saba has signed a three-year standstill
agreement 3  with HRI and Aberdeen Investments, which (amongst other matters)
commits Saba not to exercise any voting rights on any resolutions proposed at
any annual or other general meeting of HRI against the recommendation of the
board of HRI.

 

Furthermore, Aberdeen Investments and Saba have also reached an agreement
relating to up to a further eight investment trusts in Aberdeen's range, with
a combined AUM of c.£12.5bn 4 , who will have the option to participate in a
similar standstill arrangement should their independent boards decide to do
so.

 

Jason Windsor, CEO, Aberdeen Group says: "The Herald team has a long track
record of backing early-stage technology companies, and driving material long
term growth from those investments. As the fifth largest manager of closed-end
funds globally, and as a leading small cap manager, we are delighted to
welcome Katie Potts and her team to Aberdeen. Completion of this transaction
will further grow our franchise and demonstrates our innovation and commitment
to the sector."

 

Christian Pittard, Head of Closed End Funds and Managing Director, Corporate
Finance, Aberdeen Group, says: "As a smaller companies' specialist with a
proud heritage in investment trusts, I am pleased this transaction will not
only preserve the future of one of Britain's best known investment trusts, but
also allow Herald's team to keep doing what they do best as part of Aberdeen's
growing closed end funds stable. We would like to thank the HRI Board for
their confidence in appointing Aberdeen as manager of one of the jewels in the
investment trust sector's crown and the Herald team for committing to join
Aberdeen.

 

We would also like to thank Saba, who deserves special mention for working
constructively and creatively to end the impasse. Saba's collaboration and
determination to find a path forward that benefited all shareholders
ultimately made it possible to preserve this trust and, together, deliver an
outcome that is positive for everyone.

 

The agreement regarding our wider active UK trust range provides a pragmatic
and constructive way forward and supports the stability of the trusts who sign
up to the standstill."

 

Katie Potts, Founder of Herald Investment Trust, adds: "Herald has delivered a
clear and successful investment strategy since 1994, and this disciplined
approach will remain unchanged with Aberdeen, who I look forward to joining.

 

Our focus remains firmly on the technology and communications sectors, which
continue to benefit from exceptional innovation and strong long-term growth
prospects. HIML is pleased to report that the share price and NAV per share of
HIML's investment trust and fund are at record levels.

 

Looking ahead, we will benefit from Aberdeen's enhanced marketing reach and
endeavour to continue to deliver above average returns for shareholders."

 

Ends

 

 

07 May 2026

 

Notes to editors

 

1.   Aberdeen currently manages c.£19.8bn in closed end funds 5 , making it
the fifth largest manager of closed end funds globally and one of the few
asset managers that manage investment trusts at scale in both the UK and the
US.

 

2.   As of 30 April 2026, assets under management for Herald Investment
Trust was c.£1.5bn, and for Herald Worldwide Technology Fund, was c.£130m.
The OEIC has a five-star rating from Morningstar.

 

 

 

Enquiries:

 

 Media

 Duncan Young                    +44 (0) 7920 868 865

 Jemma Jackson                   +44 (0) 7340 641 812

 Institutional Equity Investors

 Duncan Heath                    +44 (0) 207 156 2495

 Group Secretariat

 Iain Jones                      +44 (0) 7464 917 797

LEI number of Aberdeen Group plc: 0TMBS544NMO7GLCE7H90

 1  The contracting entity will be abrdn Fund Managers Limited, trading as
Aberdeen Investments.

 2  As of end of 30 April 2026.

 3  The standstill agreement will terminate earlier if the tender offer
described above is not implemented or if Aberdeen Investments is not appointed
as the investment manager to the Trust.

 4  As of end of 1 May 2026.

 5  As of end of 1 May 2026.

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